KUALA LUMPUR: The Digital Ministry will update the Public Sector Strategic Digitalisation Plan (PSPSA), which is set to expire in 2025, to align with the current needs of the country, said Deputy Minister Datuk Wilson Ugak Anak Kumbong.

“We have the PSPSA, a strategic plan running from 2021 to 2025. But this framework must be elevated so that it aligns with our new digital growth. We need to sketch out, agree upon and acquire the best skills to align ourselves with Singapore, along with Korea, Thailand, and others,” he told reporters after the launch of ActivpayRoll’s new office today.

Activpayroll is a leading integrated global human resource (HR) and payroll platform which plans to strengthen its strategic position in Malaysia and to tap into the growing Asia-Pacific (Apac) payroll and HR outsourcing market with the opening of its office in Bukit Damansara. The event was attended by British High Commissioner to Malaysia Ailsa Terry and Malaysia Digital Economy Corp CEO Mahadhir Aziz.

Wilson Ugak said the ministry, along with seven related agencies, will also discuss creating a more community-based plan, which will provide opportunities for rural communities to embrace technology and digitalisation.

“This includes equity in the digital industry between urban and rural areas, in line with the government’s desire for rapid digital transformation to prevent falling behind and to compete effectively,“ he added.

Wilson Ugak also said the ministry will launch its new direction through three cores: Malaysia Digital, Digital Economy, and Digital Community to enhance digital aspects at all levels.

Activpayroll for Apac executive director Andrew Philip said the opening of the new office sets a benchmark for Activpayroll to lead in shaping the future of global payroll and HR services in the region.

“We view our continuous investment in our operational team based in Malaysia as an instrument to expand and develop Activpayroll services in this region. With the availability of skilled resources in Kuala Lumpur, we believe we can offer the necessary support to our customers to succeed in the APAC,“ he remarked.

Philip said the market is expected to reach a value of US$37.9 billion (RM180.8 billion) in 2027, with a compound annual growth rate of 8.2% starting from 2022.

This expansion in Malaysia is also in response to the increasing demand for professional services covering cross-border regional and global-scale HR and payroll in APAC.

Philip said it is particularly significant, considering that 57% of companies in Asia outsource their HR functions, and this trend is expected to grow in the coming years.

“As the industry experiences unprecedented growth, our expansion in Kuala Lumpur is timely. This move not only strengthens our presence here but also sets the stage for Activpayroll to lead in shaping the future of global payroll and HR services in the region,” he said.

Activpayroll’s new Kuala Lumpur office will serve as its primary Global Support Service Centre.

By establishing a full suite of teams, including tech and international payments, they aim to streamline service delivery and enhance customer experience.

The new office is set to become Activpayroll’s largest in terms of headcount, with expectations of a robust top-line revenue expansion exceeding 40%. Furthermore, it plans to quadruple its workforce by 2028, supported by an average operational and capital expenditure increase of 37%.

Activpayroll said the Malaysian office has already doubled its number of employees in less than a year. It has invested in training and development programmes to upskill local talent, thereby supporting Malaysia’s goals of becoming a hub of skilled talent pool, it added.